In APA format (7th edition: professional), write a 1 page essay on how theories in leadership are useful in the healthcare environment. Include a title page, abstract, main body, and references. You must include at least 1 reference peer reviewed reference.
FINANCIAL MANAGEMENT RELATIONSHIPS1The Relationship Between Revenue Management and Expense ManagementTrinity C. McClellanThe University of North Carolina at CharlotteCollege of Health and Human ServicesAuthor NoteCorrespondence concerning this essay should be addressed to
[email protected] FINANCIAL MANAGEMENT RELATIONSHIPS2AbstractThe healthcare system requires well-thought-out and strategic financial planning to continuously improve delivery of care and profitability. Revenue management and expense management departments work together to achieve this. Revenue management predicts costs of care and supplies to set prices for services. Expense management controls the process of employee spending and reimbursements. The two systems together allow the healthcare system to predict future needs, seta budget, and optimize revenue. FINANCIAL MANAGEMENT RELATIONSHIPS3The Relationship Between Revenue Management and Expense ManagementHealthcare in the United States is a unique, complex system comprised of various players. Two very important players in the financial sector of the health system framework are revenue management and expense management. Stancio describes revenue management asthe process of evaluating consumer needs, predicting future needs, pricing goods and services, and optimizing revenue (2009, p. 8). Expense management is the system for processing, paying, and auditing company expenses accrued by employees (Taunay, 2020). The relationship between revenue management and expense management in healthcare is important to ensure financial viability of a healthcare system. The financial combination yields best outcomes for healthcare systems and patients by reducing the costsof healthcare delivery, implementing evidence-based best practice, choosing cost-effective supplies and technologies, and standardizing practices and techniques(Stancio, 2009, p. 9). These management systems reduce the costs of healthcare delivery by creating standardized practices for all employees to follow. This allows the system to predict the expense for these practices. Revenue management allows the organization to predict future consumer needs to appropriately price goods and services. The financial department can estimate their revenue and then make a budget for the expense management department. Revenue and expense departments must work together to improve the healthcare organization.Revenue management and expense management work together to increase profitability and positive outcomes in the healthcare system. Revenue management evaluates current and future needs in order to price services. Expense management keeps track of expenses accrued by employees on the company’s behalf. The predictabilityoffered by both helps healthcare systems budget and price services in order to optimize revenue. FINANCIAL MANAGEMENT RELATIONSHIPS4ReferencesStancio, A. (2009). Applications of revenue management in healthcare.Doctoral dissertation. The University of Pittsburg. Taunay,, R. (2020). What is expense management? T&E for Dummies. https://www.rydoo.com/resources/blog/t-and-e-for-dummies/what-is-expense-management/